Tagging and Redistributive Taxation

Boadway,; Pestieau,

doi:10.2307/20079165

Cited by 32 publications

(44 citation statements)

References 18 publications

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“…Suppose that one-half of the population is low-skilled, whereas the other half is high-skilled. Consider the 20 Boadway and Pestieau (2006) study the optimal redistributive tax system when the population can be disaggregated into tagged groups according to their needs; namely, the amount of resources required to achieve a given level of utility. Similar to our setting, the government aims at redistributing across skill levels as well as across population groups.…”

Section: Redistribution Across Groupsmentioning

confidence: 99%

Incorporating affirmative action into the welfare state

Blumkin

Margalioth

Sadka

2009

Journal of Public Economics

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In this paper, we discuss a novel aspect of affirmative action policy. We examine its redistributive role, asking whether in an egalitarian society, supplementing the tax-transfer system with an affirmative action policy would enhance social welfare. We demonstrate that affirmative action could be a desirable policy tool even if racial discrimination does not exist in the labor market. JEL Classification: H2, D6

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Section: Redistribution Across Groupsmentioning

confidence: 99%

Incorporating affirmative action into the welfare state

Blumkin

Margalioth

Sadka

2009

Journal of Public Economics

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“…where F is de…ned in (2); IC is de…ned in (3); and U c 1 ; y 1 =w 1 is de…ned in (12). The Rawlsian policy is the most redistributive policy option.…”

Section: Resultsmentioning

confidence: 99%

“…12 The title of the task was "We want your opinions on tax policy", the description was "Rank possible tax policies and give us your opinions on taxes," and the survey requestor was identi…ed as "TaxSurvey. "…”

Section: Survey Designmentioning

confidence: 99%

“…7 Fong (2001) uses similar survey evidence to show that variation in beliefs about what explains individual outcomes is a major factor behind disparate opinions on redistribution. 8 The main challenge for these studies, in the context of this paper, is how generalizable their results are from small-scale experiments to tax policy. The economic stakes in these experiments are negligible compared to those at issue in tax policy.…”

Section: Experiments In Which Participants Produce and Distribute Resmentioning

confidence: 99%

“…two other examples: it substantially reduces the extent of utility rank reversals in the …rst-best policy, and it implies top marginal tax rates lower than what conventional theory would recommend and closer to reality. 8 The results on tagging are important because they provide evidence that Equal Sacri…ce's explanatory power is due to more than simply being a "less redistributive" criterion than Utilitarianism. While the optimal extent of both tagging and redistribution decrease when Equal Sacri…ce is given more weight, tagging is reduced much more dramatically.…”

Section: Introductionmentioning

confidence: 99%

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The promise of positive optimal taxation: normative diversity and a role for equal sacrifice

Weinzierl¹

2014

Journal of Public Economics

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A prominent assumption in modern optimal tax research is that the objective of taxation is Utilitarian.I present new survey evidence that most people reject this assumption's implications for several prominent features of tax policy, instead preferring tax policies based at least in part on a classic alternative objective: the principle of Equal Sacri…ce. I generalize the standard model to accommodate this preference for a mixed objective, proposing a method by which to make disparate criteria commensurable while respecting Pareto e¢ ciency. Then, I show that optimal policy in this generalized model, calibrated to the survey evidence and U.S. microdata, is capable of quantitatively matching several features of existing tax policy that are incompatible in the conventional model but widely endorsed in the survey and reality, including the coexistence of substantial redistribution and limited tagging. Together, these …ndings demonstrate the potential of a positive theory of optimal taxation. 277 Morgan Hall, Harvard Business School; mweinzierl@hbs.edu; and NBER. This is the working paper version of Weinzierl (2014), and it contains a set of material omitted from that published version. Portions of this paper incorporate and build on material from Weinzierl (2012), which was entitled "Why do we Redistribute so Much but Tag so Little?" I am grateful to Alan

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Equity-efficiency implications of a European tax and transfer system

Gürer

2021

Soc Choice Welf

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This study simulates three income tax scenarios in a Mirrleesian setting for 24 EU countries using data from the 2014 Structure of Earnings Survey. In scenario 1, each country individually maximizes its own welfare (benchmark). In scenarios 2 and 3, total welfare in the EU is maximized over a common budget constraint. Unlike scenario 2, the social planner of scenario 3 differentiates taxes by country of residence. If a common tax and transfer system were implemented in the EU, countries with a relatively higher mean wage rate—particularly those in Western and some of the Northern European countries—would transfer resources to the others. Scenario 2 implies increased labor distortions for almost all countries and, hence, leads to a contraction in total output. Scenario 3 produces higher (lower) marginal taxes for high- (low-) mean countries compared to the benchmark. The change in total output depends on the income effects on labor supply. Overall, total welfare is higher for the scenarios involving a European tax and transfer system despite more than two thirds of all the agents becoming worse off relative to the benchmark. A politically more feasible integrated tax system improves the well-being of almost half of all the EU but considerably reduces the aggregate welfare benefits.

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Tagging and Redistributive Taxation

Cited by 32 publications

References 18 publications

Incorporating affirmative action into the welfare state

Incorporating affirmative action into the welfare state

The promise of positive optimal taxation: normative diversity and a role for equal sacrifice

Equity-efficiency implications of a European tax and transfer system

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